The City of Pataskala is pleased to announce the creation of three new Community Reinvestment Areas (CRA), approved by the Ohio Development Services Agency on January 28, 2013. Community Reinvestment Areas are established geographic boundaries in which property owners can receive property tax incentives for investment in qualified property improvements related to the renovation of existing or construction of new buildings within these areas.
The designated CRA areas are; the Pataskala Old Village CRA, the Pataskala Columbia Center CRA; and the Pataskala Summit Station – Gateway CRA. CRA’s are implemented to encourage revitalization of the existing housing stock and the development of new commercial and/or industrial structures within the designated CRA boundaries. CRA’s are a proven initiative that has been successfully utilized in a significant number of Ohio communities to stimulate economic growth and vitality. CRA’s were created in Pataskala to stabilize the subject neighborhoods; encourage new private sector investment; encourage property revitalization; increase economic activity; stimulate job creation; and for the potential to generate new income tax revenues which can then be utilized by the City to investment in infrastructure improvements.
The following procedures have been established for participation in the CRA tax exemption program:
For residential investment projects, a property owner is required to file a Phase I pre-construction application with the City Finance Department prior to construction of the project. Upon project completion, the property owner must a file a Phase II post-construction certification for Tax Abatement with the City’s Finance Department.
For commercial / industrial investment projects, a property owner is required to submit an application for exemption to the City’s Finance Department. This application is required to be submitted prior to the commencement of construction. For all commercial and industrial projects, the exemption term and percentage will be determined through a negotiation process between the property owner and the City. In order for the property owner to receive tax exemption on an eligible project, an agreement meeting the standards set forth in Ohio Revised Code Section 3735.671 must be finalized prior to project commencement. These agreements will be performance based and evaluated on criteria that includes the number of jobs created, payroll generated, payroll per square foot of development, and income tax generated from net corporate profits. The granting of exemptions may also require approval of the impacted school district.
Activities that qualify for tax exemption under each of the CRA areas:
In the Pataskala Columbia Center CRA, the Pataskala Old Village CRA and Pataskala Summit Station – Gateway CRA, exemptions are available for remodeling of single family residential units with a minimum investment of $2,500; exemptions are available for commercial and industrial remodeling with a minimum investment of $5,000 or for new construction with a minimum investment of $5,000. For residential investment, the term of the exemption is 10 years with a corresponding exemption level of 100% on the increased value of the property. To be eligible for exemption, a residential structure being remodeled must also be owner occupied. For commercial and industrial properties, the term of the tax exemption available for qualifying remodeling projects is up to 12 years; and for new construction, the term is up to 15 years; and the exemption level may be up to 100%.
For more information and the requirements to apply to participate in the City’s CRA program, please see the documents provided below or call the City Finance Department at 740-964-6274. We have also created a 'Frequently Asked Questions' or FAQ document that provides addtional information on the program. We look forward to assisting you!